Senate Bill 618, the Lasting Economic and Academic Prosperity (LEAP) Act, would create a new state-administered endowment program within the Department of Health and Human Services, Division of Child Development and Early Education (DCDEE). The stated purpose is to support North Carolina children by funding early childhood development, child care, and related interventions that are expected to improve educational and life outcomes, while also using a state-match structure to encourage philanthropic giving.
The bill establishes the LEAP Endowment Program and directs DCDEE to develop guidelines, contract with an independent investment manager, and keep separate accounting for program funds. Endowment principal would be invested to generate income, and that investment income would be used to supplement or stabilize funding for early childhood and child care initiatives. The bill also requires annual reporting to legislative oversight and fiscal staff on investment income and expenditures, and it caps the investment manager’s compensation structure at a blended rate not to exceed 15 basis points.
In addition to the endowment framework, the bill creates a LEAP Reserve in the General Fund. Each appropriations act would have to include a transfer equal to the amount of private, separately accounted fundraising raised for the program in the prior fiscal year, effectively providing a recurring state match for philanthropic contributions. The bill also appropriates recurring General Fund money to DCDEE for fundraising efforts: $450,000 in fiscal year 2025-26 and $472,500 in 2026-27, with an expressed intent to continue increasing those amounts by 5% annually for at least eight more years.
The bill’s impact on state law would be to add a new statutory program and reserve mechanism tied to early childhood funding, create ongoing reporting and accounting requirements, and establish a recurring budgetary commitment for fundraising and matching support. It would affect DCDEE, the Office of the State Controller, the General Fund, and private donors or philanthropic partners who contribute to the program.
Because there are no committee transcripts or recorded votes provided, the general sentiment cannot be measured from debate or roll call history. Based on the bill text alone, the measure appears designed as a pro-childhood-investment and pro-philanthropy initiative, but it could raise questions about the use of state funds for fundraising, the long-term budget commitment, and the mechanics of matching private donations with public dollars.
The bill would amend North Carolina law by adding a new LEAP Endowment Program section to Chapter 143B and a new LEAP Reserve section to Chapter 143C. It would create a new state-managed funding structure for early childhood and child care initiatives, require annual transfers tied to private fundraising, and impose accounting, reporting, and investment-management requirements on DCDEE and the State Controller. It also appropriates recurring General Fund dollars for fundraising operations and signals a multi-year future funding commitment.
No committee discussion or voting record was provided, so there is no direct evidence of support or opposition from legislators in the available materials. From the bill’s stated goals, the measure is framed positively around children’s outcomes, early education, and leveraging philanthropy, suggesting an intent to build broad support. Any sentiment assessment is therefore limited to the text itself rather than recorded debate.
The main potential points of contention are fiscal and administrative. Critics could question whether the General Fund should be used to support fundraising efforts and whether the state should commit to matching private donations through the LEAP Reserve. Others may scrutinize the use of an independent investment manager, the 15-basis-point fee cap, and the requirement that DCDEE maintain separate accounts and report annually. Supporters are likely to emphasize the program’s focus on early childhood development, stable funding, and leveraging philanthropic dollars to expand services.